Though still lower than the previous week, negotiated cash prices paid for fed cattle Friday were $1-$2 more than earlier in the week at $107-$108/cwt. in the Texas Panhandle and $107.50 in Nebraska.
Heading into Friday, plenty of folks figured negotiated cash fed cattle trade was pretty much done for the week, at mainly $105-$106/cwt. on a live basis and $170 in the beef.
Stronger cash trade helped Cattle futures surge higher Friday, presumably supported by technical buying, as well as short covering and profit taking for the end of the month and quarter.
The surge came despite an announcement during trading hours that Canada will assess surtaxes on $16.6 billion worth of U.S. imports—including beef products—in retaliation for U.S. tariffs on Canadian steel and aluminum imports (see below).
Except for $1.20 lower in expiring Jun,Live Cattle futures closed an average of $2.15 higher ($1.65 higher to limit up $3.00 in near Aug and Oct—the highest close since March).
Feeder Cattle futures closed an average of $2.92 higher ($1.55 higher to limit up $4.50 in spot Aug, the highest since March).
Boxed beef cutout values were lower on light demand and heavy to moderate offerings, according to the Agricultural Marketing Service.
Choice boxed beef cutout value was $1.28 lowerFriday afternoon at $211.96/cwt. Select was $2.09 lower at $198.57.
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